Section 49 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
49. Operation of special funds.
(1)A co-operative may create reserves and such other funds as are in the interest of members or the co-operative and which are specified in the bye-laws :Provided that where a contributory provident fund is created for the benefit of employees, such fund-(a)shall not be used in the business of the co-operative;(b)shall not form part of the assets of the co-operative;(c)shall not be liable to attachment or be subject to any other process of any Court or other authority; and(d)shall be administered in such manner as may be provided in the bye-laws.(2)The funds so created may be used in the business of the cooperative. but in any financial year if the fund is not applied in part or whole for the purpose for which it was created, the co-operative shall credit to the account of such fund an annual interest on the amount of balance of such fund at a rate not less than the rate paid by Scheduled banks on long-term fixed deposits, debiting such interest as operational expenditure.
